UK-based stockbroking firm, Charles Stanley, has fallen victim to fraud, according to reports in the UK press. A report in The Telegraph...

UK-based stockbroking firm, Charles Stanley, has fallen victim to fraud, according to reports in the UK press. A report in The Telegraph said the fraudulent activity began in October 2002 when share registrars for Unilever received a letter purporting to come from Jean Powell, the holder of 25,000 Unilever shares. A forged letter notified them of a change of address from her Dorset home to one in south London. Later that week, Unilever's registrars reportedly received a forged change of address form from the fraudster, posing as Mrs Powell, resulting in her details being changed. Although the registrar sent an "indemnity document" to her new address in London and a fraud cheque letter to her old address, the indemnity was returned with a faked AXA Insurance stamp and countersignature. The fraudster then requested a new share certificate, claiming the original had been lost, stolen or destroyed, and the registrars issued a duplicate certificate in Mrs Powell's name to the new address. Several months later, the shares were transferred to another name and sold by the bogus owner, who made over £100,000 ($183,970) in illegal profits. When the fraud came to light, the real Mrs Powell was compensated for her lost shares by Unilever. Charles Stanley became involved in the affair because it had sold the shares for the fraudulent investor after he asked a bank to carry out the transaction. Unilever subsequently sued in the High Court for damages, and Charles Stanley settled out of court.